SyntheticMR (SYNT) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were SEK 14.2 million, down 20% year-over-year, mainly due to North America performance and revenue recognition changes.

• Operating profit was SEK -10.2 million (Q1 2024: SEK 2.7 million); adjusted for acquisition costs, operating profit was SEK -9.9 million.

• Net profit for the period was SEK -13.3 million (Q1 2024: SEK 3.4 million); EPS before dilution was SEK -0.35.

• Cash flow from operating activities was positive at SEK 1.8 million, with cash and cash equivalents at SEK 22.7 million at quarter-end.

• Acquisition of Combinostics Oy completed in January 2025, broadening the product portfolio and strategic focus.

Financial highlights

• Net sales decreased 20% year-over-year to SEK 14.2 million; Combinostics contributed SEK 2.8 million.

• Operating expenses increased to SEK 26.8 million (Q1 2024: SEK 20.1 million), mainly due to Combinostics and currency effects.

• Adjusted operating margin was -70%; reported operating margin was -72%.

• Cash and cash equivalents increased to SEK 22.7 million (Q1 2024: SEK 16.7 million), supported by a fully subscribed rights issue.

• Equity/assets ratio improved to 75.9% (Q1 2024: 58.7%).

Outlook and guidance

• Efficiency improvements and Combinostics integration expected to yield benefits from Q2 2025, with full impact by end of Q3.

• Focus remains on commercial recovery in the US, operational efficiency, and global market expansion.

• ARR increased to SEK 9.4 million at quarter-end, indicating growth in recurring revenue.